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as stated, diagonal

approximately, also assuming no change in vol. but your thetas will increase each day as well

Treasuries. Options up to 3 months out generally use a 90 T-bill rate, longer that 3 months use a bill or note with corresponding maturity.

http://www.quantonline.co.za/Articles/article_volatility.htm

the floor can work it

Thanks for the amazing insight So, let me see if I understand this correctly... If demand rises then price rises too? Wow! I never would have figured that one out Although, I do seem to remember something about an inverse price/yield relationship

an inverted curve is very bullish? monetary poilicy has been unable to corrct this invertion over the past year

Yeh well, hear's a few more facts Daily Treasury Yield Curve Rates 04/25/07 1mo 3mo. 6mo. 1yr. 2 yr. 3yr. 5yr. 7yr. 10yr. 20yr. 30 yr. 4.94 4.97 5.03 4.90 4.63 4.55 4.55 4.57 4.66 4.91 4.83

maybe I should specify that you should only use cash in your acct to buy the bills. don't create a debit balance

Buy t-bills (1-5% margin depending on your broker) Use the excess equity for your option strategies. back spread your outright longs to reduce cost. (if pricing allows it) the treasuries will give you a little cushion since you seem very concerned about interest.

I know Schwab used to (don't know if it's changed) pay interest only on cash balances in excess of any short market value. I've heard others do that as well.

I guess it depends on your broker/platform. I'm not an IB customer but I have the ability to route to them. but only in standard increments.

Route to IB. You can get filled in pennies but you still have to bid/offer in standard increments. or, trade a stock on the penny pilot program

Do you mean Prop firm or Brokerage firm?

When I used to scalp the Notes and Bonds, I found that if I joined the bid, by the time someone hit me I didn't want to be long anymore. I usually tried to be the last one to buy the offer as it turned bid or the last to sell the bid as it went offered. If I missed buying the offer I knew...

Also keep in mind that stops on options are triggered differently than stops on stocks. a sell stop on an option is triggered by a print or the offer. a buy stop on a print or bid. that adds to your slippage

That's just when they booked the assignment into your acct. You'll also notice most broker book stock into your acct immediately when you exercise prior to expiration even though the exercise instructions aren't transmitted to the OCC until after market close. The exercise technically takes...

Technically a stock trade on expiration Friday settles before an assignment/exercise but most firms give leeway for offsetting trades on friday and Monday as far as settlement/restrictions go.

Options expire on Saturday not Friday

Real prop firms don't require any deposit, series 7 depending on company structure.